Rupiah Weakens, Tofu and Tempeh Prices Predicted to Rise by up to 2 Per Cent

An agricultural observer from the Centre of Reform on Economics (CORE), Eliza Mardian, suggests that the depreciation of the rupiah has the potential to push up the prices of processed soybean products by around two per cent. This pressure arises amidst Indonesia’s high dependency on soybean imports, which meet almost 90 per cent of national needs.

The weakening of the rupiah exchange rate increases the cost of soybean imports despite relatively stable global prices. This condition triggers a rise in domestic raw material costs and puts pressure on the soybean-based food supply chain. “Almost 90 per cent of our soybeans are met through imports. The depreciation of the rupiah certainly causes an increase in the price of imported goods, including soybeans,” Eliza told Republika.co.id on Monday (18/5/2026).

The rupiah exchange rate on Monday morning was recorded at Rp 17,658 per US dollar. This position weakened by approximately 61 points or 0.35 per cent compared to the previous close of Rp 17,597 per US dollar.

Currency analyst Lukman Leong from Doo Financial Futures explained that the rupiah’s weakness was triggered by increased global ‘risk-off’ sentiment. The market responded negatively to the meeting between US President Donald Trump and Chinese President Xi Jinping, which was deemed not to have provided clarity regarding global geopolitical conflicts.

According to Eliza, the weakening of the rupiah exchange rate is creating a phenomenon of ‘imported inflation’. Inflationary pressure emerges due to the rising cost of imported goods when the domestic currency depreciates. “When the rupiah exchange rate weakens, the cost of importing soybeans automatically increases even though global prices remain relatively stable. This condition will trigger an increase in domestic raw material costs,” she said.

Eliza explained that the impact of rising soybean prices does not stop at imported raw materials. The commodity serves as the primary ingredient for various consumer products, such as tofu, tempeh, soy milk, and even livestock feed based on soybean meal.